TIB concerned about unprecedented anarchy and risk in banking sector

Transparency International Bangladesh (TIB) has expressed concern that “unprecedented anarchy and risk” is prevailing in the banking and financial sectors. On the one hand, misuse of power, political influence and lobbying have led to unrestrained forgery, corruption and dominance of loan defaulters, while on the other hand, ineffective ad hoc measures by a section of the regulatory authorities leading to unprecedented anarchy and risk in the banking and financial sector, reads a press release from TIB on Sunday. The corruption watchdog has also suggested forming an expert committee composed of independent individuals and organisations to ensure good governance in the banking sector. TIB urged the government to enact and implement a thorough and time-befitting policy keeping in mind short, middle, and long-term risks as per the recommendation of the expert committee. TIB Executive Director Iftekharuzzaman said:”There is no alternative for the government, and particularly Bangladesh Bank, to form an expert committee involving skilled, experienced, independent and neutral individuals and organisations, and to enact and implement a full-fledged policy with plans to reduce short-, middle-, and long-term risk reduction plans as per the the recommendations of the expert committee.” “In their bid to prevent forgery, corruption and institutionalization of loan defaulting mediated through misuse of power, political influence and lobbying, a section of the regulatory authorities has not only been engaged in steps on ad hoc basis, rather unprecedented anarchy and crisis of trust have been created through imprudence and visible helplessness by leaving main problem unnoticed,” he added. Dr Iftekharuzzaman also mentioned that despite some recent steps by Bangladesh Bank to tackle some crisis in both state-owned and private commercial bank, including Farmers Bank and NRBC Bank, the anomalies are still remaining unrestrained as the individuals who are involved in it are yet to be meted out with exemplary punishment. The TIB executive director also noted that risks of institutionalization of patrimonialism has been created by the latest amendment of the company act. TIB is of the opinion that the existing unrestrained trend of showing disregard towards the law can not be stopped unless the vested interested quarters cannot be identified in the sector, he said, adding that TIB expects that the government must show the political will and guts to ensure that the regulatory authorities do not bow to any pressure in meeting their responsibilities.